Former Coinbase CTO Bets $1 Million on Bitcoin Reaching $1 Million in 90 Days
Former Coinbase chief technology officer Balaji Srinivasan has placed a bet worth $1 million on Bitcoin's price reaching $1 million by June 17. Srinivasan accepted the wager from pseudonymous Twitter user James Medlock, who bet $1 million that the United States would not experience hyperinflation.
Srinivasan, a well-known Bitcoin enthusiast and entrepreneur, is betting that the United States will experience hyperinflation, leading to a deflation of the U.S. dollar and a surge in the value of Bitcoin. Medlock, on the other hand, is bearish about hyperinflation in the country. The bet has been set up as a smart contract, and if Srinivasan loses, he will pay $1 million worth of the dollar-pegged stablecoin USD Coin (USDC) and one BTC to Medlock. If Bitcoin's price reaches $1 million by the deadline, Srinivasan will keep the 1 BTC and the $1 million in USDC.
Srinivasan has also disclosed that he will move another $1 million in USDC for another wager on the same topic, with Medlock and one other person. The bet comes at a time when Bitcoin's price has already reached $27,387, with its market capitalization adding over $194 billion year-to-date to a 66% growth in 2023. It has also outperformed Wall Street bank stocks amid fears of a global banking crisis.
Srinivasan's bet is based on his belief that the U.S. economy is facing an impending crisis that will lead to the deflation of the U.S. dollar, which will result in a hyperinflation scenario that will drive Bitcoin's price up to $1 million. This view is shared by many other Bitcoin proponents, who argue that Bitcoin's finite supply and decentralization make it a safe-haven asset in times of economic uncertainty.
However, the mainstream financial industry and economists have largely dismissed these claims, arguing that Bitcoin's price is driven mainly by speculative trading and that it has no intrinsic value. Despite these criticisms, Bitcoin's popularity and adoption continue to grow, with major companies and institutions like Tesla, MicroStrategy, and PayPal investing in the cryptocurrency.
In conclusion, Balaji Srinivasan's $1 million bet on Bitcoin's price reaching $1 million in 90 days is a bold move that reflects the growing optimism among Bitcoin proponents about the cryptocurrency's future. While it remains to be seen whether Srinivasan will win the bet, the ongoing debate over Bitcoin's value and role in the global economy is likely to continue for some time.
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